Looking for an explaination

I’m just looking for an answer on this story off of Drudge about mortgage fraud arrests.

Here’s the title and first paragraph.

Hundreds swept up in mortgage fraud arrests

WASHINGTON – More than 400 real estate industry players have been indicted since March — including dozens over the last two days — in a Justice Department crackdown on incidents of mortgage fraud nationwide that have contributed to the country’s housing crisis.

But then later, you get this:

The most common type of mortgage fraud was misstatement of income or assets, followed by forged documents, inflated appraisals and misrepresentation of a buyer’s intent to occupy a property as a primary residence.

Do mortgage people go to jail if the potential homeowner misrepresents him/herself??

2 thoughts on “Looking for an explaination

  1. I read a few articles on this, and it appears that there is evidence that people were selling to each other at inflated prices with no one intending to occupy and that everyone seems to have known the scam- those are the ones getting arrested…..

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